George Eliot £2.5m in the red amid rising demand

FINANCE: George Eliot Hospital Trust was £2.5m in the red at the end of August, £2.2m worse than planned.

September board papers show that £1.1m of the variance was down to contract agreements falling short of plan.

“The potential for additional support funding is being discussed with the Arden primary care trust cluster and [West Midlands] strategic health authority,” the papers said.

“The financial position demonstrates the basis for the board’s decision last year not to progress an independent foundation trust application, but to seek a strategic partner in order to secure clinical and financial sustainability.”

Income from high activity levels was offsetting about half of the cost pressures from medical agency and locum staff.

About £700,000 of the deficit was due to shortfalls in local cost improvement programmes.

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